1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Debora [2.8K]
3 years ago
5

Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $

138,000 with a $12,000 residual value and a ten-year life. The equipment will replace one employee who has an average wage of $29,780 per year. In addition, the equipment will have operating and energy costs of $6,680 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent.
Business
1 answer:
Ne4ueva [31]3 years ago
6 0

Answer:

Average rate of return =  14 %

Explanation:

Average rate of return = Annual average return/ Average Investment

Average investment =( Initial investment + scrap value)/2

Average investment = 138,000 + 12,000/2 =75,000

Average annual return = Savings in cost - energy cost - depreciation

Depreciation = (initial cost - scrap value)/2= (138,000 - 12,000)/2= 12600

Average annual return = 29,780-6,680-12600= 10500

Average rate of return = 10,500/75,000 × 100= 14 %

Average rate of return =  14 %

You might be interested in
2. How are school rules similar to state and federal laws? What woud the typical American high school be like if there were no r
jenyasd209 [6]
School rules and government rules are very similar, some similarity are no steeling and drugs and an average high school with no rules would be chaotic. 
7 0
3 years ago
At its simplest, acquisition management can be viewed as:
Goryan [66]

Answer:

The correct answer is letter "D": project management plus operations management.

Explanation:

Acquisition management refers to all the efforts a company makes to obtain the materials necessary for the operations process stage to take place. Labor, land, and equipment are the main factors that the company must acquire to make its project become true. Under that scenario, project management and <em>operations management </em>are the core of the <em>acquisition management</em>.

3 0
3 years ago
If a perfectly competitive firm finds that price is less than average variable cost, it should: shut down immediately. increase
Musya8 [376]

Answer: It should shot down immediately.

Explanation:

If the market price is equal to average cost at the profit-maximizing level of output, then the firm is making zero profits. If the market price that a perfectly competitive firm faces is below average variable cost at the profit-maximizing quantity of output, then the firm should shut down operations immediately.

4 0
3 years ago
The manufacturing cost of the widgets your company makes has dropped by 50%. One of your customers, Sam, tells you he knows this
olga_2 [115]

Based on the above scenario, the answer is No. I would not tell Sue, because  manufacturing cost falls under business's internal factors that tends to affect firm's  profitability.

<h3>What is discount?</h3>

Others are:

  • Also note that if i tell her,  my actions will be found to be ethically incorrect.

The term discount is known to be an act or process where a price of product or services are  reduced prices to a price lower than the exact sum of that item.

Note that Based on the above scenario, the answer is No. I would not tell Sue, because  manufacturing cost falls under business's internal factors that tends to affect firm's  profitability.

Learn more about discount from

brainly.com/question/1548141

#SPJ1

4 0
2 years ago
We typically hear of the gains from trade coming through specialization wherein each nation produces more of and exports that go
Brut [27]

Answer:

Generally theoretical models work only in theory. E.g. perfect competition models exist in theory but no market is really a perfect competition market.

The Ricardian model or the H-O model, or other trade models make the mistake of assuming that resources can be allocated at will and almost immediately, e.g. a fisherman can immediately become an engineer and start developing apps. Or a farmer that produces corn or rye (very popular examples) can suddenly start working at a factory producing bluejeans.

In real life, it doesn't happen. Also, trade models never consider natural trade barriers and extra costs related to trade. E.g. it is not the same to sell $10,000 worth of corn (you need a very large truck) than selling $10,000 worth of jeans (all you need is a small delivery van). In real life, trade is not simple, it is actually extremely complicated.

E.g. everyone knows that manufacturing goods in America is not efficient, at best companies can be less inefficient, but no manufacturing company in America is really efficient if we compare them to foreign companies. Even people who work in manufacturing industries know this, but they want to continue working in them. They want the companies to keep producing in America and they want to keep their jobs. Not everyone in America has a college degree in computer programming, finances, is able to design robots, or is a doctor, etc.

In real life, efficient industries have to exist alongside inefficient industries, and the whole economy suffers from it. But it is unavoidable. In the long run, the economy will eventually shift resources to more efficient industries,  but it takes a long time, and a lot of people and companies will be against it. E.g. every year there are less shoe manufacturers in America, and eventually sometime in the future there will be none.

7 0
3 years ago
Other questions:
  • Furnaces &amp; Filters Inc. is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxl
    6·1 answer
  • We argued that when the economic growth in the US is greater than the (economic) growth rates of our trading partners, the trade
    14·1 answer
  • In its fiscal 2016 balance sheet, JetBlue Airways Corporation, reported cash of $443 million at year-end. The statement of cash
    6·1 answer
  • January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 41,000 of its common shares at $9 each. T
    9·1 answer
  • Tempo Corp. will issue preferred stock to finance a new artillery line. The firm's existing preferred stock pays a dividend of $
    9·1 answer
  • Label demand as elastic, unit elastic, or inelastic for each scenario. Use the midpoint method when applicable to calculate the
    8·1 answer
  • A factory costs $400,000. It will produce an inflow after operating costs of $100 000 in year 1. $ 200,000 in year 2, and $ 300,
    14·1 answer
  • Firm B Keep agreement Break agreement Firm A Keep agreement Firm A profit = $50 Firm B profit = $50 Firm A profit = $100 Firm B
    5·1 answer
  • If you were running a marathon which type of muscle fibers.
    15·1 answer
  • The field of accounting that focuses on providing information for external decision makers is.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!